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China to redress production overcapacity in six sectors - 21 Oct 09

Xinhua cited Mr Chen Bin director of the Department of Industry of the NDRC as saying that the National Development and Reform Commission will mainly redress production overcapacity in six sectors.

According to the report, the six sectors include
1. Steel
2. Cement
3. Plate glass
4. Coal chemical industry
5. Polycrystalline silicon
6. Windpower equipment.

Mr Chen said the NDRC also warns of obvious production overcapacity in sectors like electrolytic aluminum, ship manufacturing and soybean oil extraction. He said China would fight serious overcapacity in sectors like steel industry and offer guidance for new-born industries like windpower equipment to avoid low level repetitive construction.

He added that China has achieved preliminary progresses in fighting the global economic downturn, but the foundation for economic recovery is not stable yet and overcapacity might lead to bankruptcy, unemployment and bad bank loans if it was not checked in time.

Oct 21, 2009 11:59
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